More than 1,000 investment bankers have quit Royal Bank of Scotland to join rival firms for guaranteed cash bonuses and big salary increases, according to banking sources.
The staff exodus, which has cut a swathe through the senior ranks of RBS, has been gathering pace since the government first ordered it to clamp down on bonuses this year.
Although they account for less than 5% of staff in RBS’s investment division, the traders and corporate financiers who have been lured away are estimated to have earned it between £600m and £700m last year — almost 8% of its 2008 income.
I believe that this was foreseen by those of us who are not complete and utter morons, i.e. by anyone who is not a politician.